Economic Policy Institute Briefing Paper – Working the Graveyard Shift, Why raising the Social Security retirement age is not the answer, by Monique Morrissey and Emily Garr: “The life expectancy of older Americans has increased by three and a half years over the past half century. In 2005, Americans who survived to age 65 could expect to live another 18.6 years, up from 15.1 years in 1955. By 2050, the Social Security Administration estimates that the average 65-year-old will live 21 years in retirement. As our golden years grow longer, we will need to work longer, work harder, or increase the share of earnings devoted to funding retirement in order to ensure a comfortable old age. The choice depends on whether we prefer to enjoy the fruits of economic growth in the form of increased leisure or increased consumption.”
Economic Policy Institute: “Americans are living longer, so why shouldnt they work longer? Thats a prevailing thought in Washington, where lawmakers nine years ago raised the retirement age from 65 to 67 years, and now they are reportedly considering making workers wait even longer to collect full social security benefits. At first glance, it seems like a sensible and fair way to reverse a projected shortfall in social security. On Wednesday, the Washington Post described Senator Lindsey Graham (R-S.C.) and House Majority Leader Steny Hoyer (D-Md.) as both favoring this approach in recent talks about ways to overhaul the social security system. But research shows that this seemingly logical strategy would actually place a disproportionate burden on lower-income and minority workers, cutting their benefits and shortening their retirement more than for the average worker…”
Hoyer Delivers Keynote Address on Entitlement and Health Care Reform, May 6, 2009: “…I believe we would have the easiest challenge in reforming Social Security. Here, the options are well and widely understood. We can bring in more revenues. We can restrain the growth of benefits, particularly for higher-income workers, while we strengthen the safety net for lower-income workers. And/or we can raise the retirement age, recognizing that our life expectancy is significantly higher today. What is missing here is not ideasit is political will…”
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